"The projects would be run under the Public Private Partnership-Availability Payment funding scheme," IIGF Director of Business Muhammad Wahid Sutopo said in the Investment Opportunity Through PPP Indonesia Banker and Investor Forum held here on Mond
Jakarta (ANTARA News) - The state-owned firm Indonesia Infrastructure Guarantee Fund (IIGF) has offered four national strategic projects worth Rp4.75 trillion (US$330.8 million) to domestic as well as international investors.

"The projects would be run under the Public Private Partnership-Availability Payment funding scheme," IIGF Director of Business Muhammad Wahid Sutopo said in the Investment Opportunity Through PPP Indonesia Banker and Investor Forum held here on Monday.

The four projects are Trans Sulawesi railway project routing Makassar-Parepare worth Rp1 trillion (US$69.6 million), construction of tower 2 Dharmais cancer hospital worth Rp650 billion (US$45 million), non-toll road preservation of Riau and South Sumatra`s eastern cross roads (Jalintim) worth Rp3.1 trillion (US$215.9 billion).

Sutopo said, the IIGF has since the beginning involved in the project screening process. "Now the four projects has entered pre- qualification for bidding. We hope that investors and banks would take part in national infrastructure development."

The forum, he added, is expected to establish a guarantee consortium for the projects thus its financial close could be reached as targeted.

"The forum has reiterated the government`s commitment to speed up development of infrastructure project through the offered facilities, to encourage more parties to participate," he stated.

Meanwhile, the Director for management of government support and infrastructure funding (PDPPI) of the Finance Ministry Freddy Saragih said in the future, cities would be developed with public involvement.

Among the public involvement was the Public Private Partnership funding scheme, where investors and bankers are expected to take part in the projects.

According to Freddy, PPP scheme would become one of the government`s priority in the draft of 2019 state budget.

"There will be not only four projects. In 2019, we will have 19 projects under the PPP funding scheme and PPP would become a promising scheme for investment in the future," he said.

Currently, the government is preparing the standard for PPP preparation, process, transaction and operation.

The Director General of Railway at the Transportation Ministry Zulfikri has expressed hope that more private investors would take part in railway projects in Indonesia.

Zulfikri noted that by 2030 the government has some railway construction project plan that might need a total investment of US$67 billion or Rp922 trillion.

Of the total investment, the government only has the capability to fund some 30 percent of it, while the remaining 70 percent would need private investment.

"Therefore we offer these projects to private sector," he said.

Reported by Ahmad Wijaya
(S022/o001
(T.SYS/A/KR-BSR/A/O001) 16-07-2018 13:34:12

Reporter: .
Editor: Fardah Assegaf
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